MERCOSUR: Urea Market 2024

Urea Market Size in MERCOSUR

In 2022, the MERCOSUR urea market increased by 54% to $X, rising for the second consecutive year after three years of decline. In general, consumption recorded a prominent expansion. Over the period under review, the market hit record highs in 2022 and is likely to see gradual growth in the near future.

Urea Production in MERCOSUR

In value terms, urea production declined to $X in 2022 estimated in export price. In general, production recorded a perceptible reduction. The growth pace was the most rapid in 2021 with an increase of 22%. Over the period under review, production attained the maximum level at $X in 2012; however, from 2013 to 2022, production remained at a lower figure.

Urea Exports

Exports in MERCOSUR

After five years of decline, overseas shipments of urea increased by 54% to X tons in 2022. Over the period under review, exports, however, recorded a abrupt contraction. The most prominent rate of growth was recorded in 2016 with an increase of 63%. As a result, the exports reached the peak of X tons. From 2017 to 2022, the growth of the exports failed to regain momentum.

In value terms, urea exports soared to $X in 2022. Overall, exports, however, continue to indicate a abrupt downturn. Over the period under review, the exports hit record highs at $X in 2012; however, from 2013 to 2022, the exports stood at a somewhat lower figure.

Exports by Country

In 2022, Venezuela (X tons) was the largest exporter of urea, creating 74% of total exports. It was distantly followed by Brazil (X tons), creating a 23% share of total exports.

From 2012 to 2022, average annual rates of growth with regard to urea exports from Venezuela stood at -8.9%. At the same time, Brazil (+19.5%) displayed positive paces of growth. Moreover, Brazil emerged as the fastest-growing exporter exported in MERCOSUR, with a CAGR of +19.5% from 2012-2022. Brazil (+21 p.p.) and Venezuela (+12 p.p.) significantly strengthened its position in terms of the total exports, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Venezuela ($X) remains the largest urea supplier in MERCOSUR, comprising 74% of total exports. The second position in the ranking was held by Brazil ($X), with a 24% share of total exports.

In Venezuela, urea exports shrank by an average annual rate of -4.2% over the period from 2012-2022.

Export Prices by Country

In 2022, the export price in MERCOSUR amounted to $X per ton, surging by 60% against the previous year. Overall, the export price recorded strong growth. The pace of growth appeared the most rapid in 2021 an increase of 65% against the previous year. Over the period under review, the export prices reached the peak figure in 2022 and is expected to retain growth in the near future.

Average prices varied noticeably amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Brazil ($X per ton), while Venezuela amounted to $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Venezuela (+5.2%).

Urea Imports

Imports in MERCOSUR

In 2022, overseas purchases of urea increased by 36% to X tons, rising for the third year in a row after two years of decline. Over the period under review, imports recorded a buoyant expansion. The most prominent rate of growth was recorded in 2021 when imports increased by 40% against the previous year. The volume of import peaked in 2022 and is likely to see gradual growth in years to come.

In value terms, urea imports skyrocketed to $X in 2022. In general, imports showed prominent growth. The most prominent rate of growth was recorded in 2021 when imports increased by 140%. Over the period under review, imports attained the peak figure in 2022 and are expected to retain growth in years to come.

Imports by Country

Brazil represented the major importer of urea in MERCOSUR, with the volume of imports resulting at X tons, which was approx. 70% of total imports in 2022. Argentina (X tons) held the second position in the ranking, followed by Chile (X tons) and Colombia (X tons). All these countries together took near 23% share of total imports. The following importers - Uruguay (X tons) and Peru (X tons) - each accounted for a 6.1% share of total imports.

Imports into Brazil increased at an average annual rate of +11.5% from 2012 to 2022. At the same time, Argentina (+21.0%), Uruguay (+3.4%), Chile (+2.7%) and Colombia (+1.2%) displayed positive paces of growth. Moreover, Argentina emerged as the fastest-growing importer imported in MERCOSUR, with a CAGR of +21.0% from 2012-2022. By contrast, Peru (-4.5%) illustrated a downward trend over the same period. While the share of Brazil (+18 p.p.) and Argentina (+7.8 p.p.) increased significantly in terms of the total imports from 2012-2022, the share of Uruguay (-1.8 p.p.), Chile (-4.4 p.p.), Colombia (-4.6 p.p.) and Peru (-7.6 p.p.) displayed negative dynamics.

In value terms, Brazil ($X) constitutes the largest market for imported urea in MERCOSUR, comprising 74% of total imports. The second position in the ranking was held by Argentina ($X), with an 11% share of total imports. It was followed by Chile, with a 5.8% share.

In Brazil, urea imports increased at an average annual rate of +17.1% over the period from 2012-2022. The remaining importing countries recorded the following average annual rates of imports growth: Argentina (+24.0% per year) and Chile (+4.2% per year).

Import Prices by Country

The import price in MERCOSUR stood at $X per ton in 2022, jumping by 41% against the previous year. Over the period under review, the import price posted a temperate increase. The growth pace was the most rapid in 2021 an increase of 71% against the previous year. Over the period under review, import prices hit record highs in 2022 and is expected to retain growth in the near future.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Uruguay ($X per ton), while Peru ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (+5.0%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform